"This is particularly popular around important Lunar holidays such as the Chinese Lunar New Year in early February," CLSA argued.

Gender differences also reverse conditions from areas including the US and Europe, as men typically yield greater potential than women.

"The luxury market in China is still largely male-dominated given workforce demographics and the culture of gift giving for business purposes," the report said.

"Spending amongst female consumers in China is increasing and luxury handbags are gaining increasing popularity; this will be positive for foreign brands such as Gucci, Hermes, Louis Vuitton and Prada."

In return for their investment, customers demand personalised goods and service, reflecting the aspiration to be "treated like a VIP".

Bulgari, Gucci, Hermes, Louis Vuitton, Richemont and Swatch are already making considerable progress in China, and the country is anticipated to generate half of the sector's global growth in the coming decade.

More specifically, China could account for 44% of total premium products and travel sales by 2020, measured against a total of just 15% today.

The world's most populous nation should deliver an annual acceleration of 23%, meaning it will become the industry's biggest outlet by the same date, worth €74bn per year, or 0.6% of domestic GDP.

"It is only a matter of time before Chinese luxury brands are established at home," CLSA added.

"We expect this to happen in product categories where China has a perceived fundamental advantage, primarily in the use of materials such as jade, porcelain or precious woods.

"In the meantime, we expect Asian companies to look to acquire European brands and build up manufacturing expertise."

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